The customs authorities of the exporting country issue a EUR.1 movement certificate upon application by the exporter, or the exporter's representative acting on the exporter's behalf and responsibility, cf. Article 16(1) of Protocol 4 to the EEA Agreement. Any exporter may use a EUR.1 movement certificate, provided that the conditions of the applicable rules of origin are satisfied.

The EUR.1 movement certificate consists of a three-part set:

• the first sheet is the movement certificate itself;

• the second sheet is a copy intended for the exporter; and

• the third sheet is the application for the movement certificate.

The exporter or the exporter's representative must complete the certificate, the copy and the application form and submit them to the customs authorities for endorsement. Where the exporter chooses to complete the forms by hand, the information must be entered in ink and in block capitals, cf. Article 16(2) of Protocol 4.

If any boxes on the movement certificate are not completed in full, a horizontal line must be drawn through the unused space. For the format of the EUR.1 movement certificate and instructions for its completion, reference is made to Appendix I. Any person applying for a EUR.1 movement certificate undertakes to provide the customs authorities, whenever required, with all supporting documents necessary to prove the originating status of the goods, cf. Article 16(3) of Protocol 4. A EUR.1 movement certificate may be endorsed by the customs authorities at any customs office where export customs clearance is carried out.

The customs authorities are required to take all necessary measures to verify the originating status of the goods. For this purpose, they may request any supporting documentation and carry out any examination of the exporter's accounts that they consider necessary to ensure compliance with the rules of origin, cf. Article 16(5) of Protocol 4. The customs authorities endorse the movement certificate by completing Box 11 of the certificate, cf. Article 16(6). The application form is retained by the customs authorities for their records.

The exporter then sends the endorsed movement certificate to the importer, who presents it to the relevant customs authorities when the goods are cleared for import.

A EUR.1 movement certificate does not replace any other export documents, such as an export declaration or any licences that may be required by law for the export of the goods.

Other free trade agreements

Similar provisions governing EUR.1 movement certificates are contained in the EFTA Convention and the EFTA free trade agreements. The provisions of the EFTA–Israel Free Trade Agreement are structured differently from the corresponding provisions in the other agreements. LT Certificate.

The provisions of free trade agreements also allow exporters to provide proof of the origin of goods by making an origin declaration on an invoice, subject to certain conditions. The rules governing origin declarations on invoices enable exporters to issue proof of origin themselves, without the involvement or endorsement of the customs authorities, unlike the procedure for issuing EUR.1 movement certificates.

Origin declarations on invoices may be used in two circumstances: Firstly for Low-value consignments. Any exporter may make an origin declaration on an invoice where the value of the originating products in the consignment does not exceed EUR 6,000 (see section 6.2.2.1). Secondly, approved exporters may apply for authorisation from the Iceland Revenue and Customs authority to make origin declarations on invoices regardless of the value of the goods concerned (see section 6.2.2.2).

See also value thresholds in other currencies.

6.2.2.1 Authorisation to make origin declarations on invoices

Any exporter may make an origin declaration on an invoice where the value of the originating products contained in the consignment does not exceed EUR 6,000, cf. Article 20(1)(b) of Protocol 4 to the EEA Agreement.

The value threshold is based on the FOB value of the originating products in the consignment. The consignment may also contain products that are not originating products. As a result, the total value of the consignment may exceed the value limit applicable to an origin declaration on an invoice. In such cases, the non-originating products must be clearly identified. However, references to products that are not covered by the origin declaration should not be included in the declaration itself. For an example of an invoice declaration, see Appendix II.

For the conversion of the EUR 6,000 threshold into other currencies, the exchange rates applicable on the first working day of October 1999 are used, cf. the table in Appendix III.

Other free trade agreements

Under the EFTA–Israel Free Trade Agreement, any exporter may make an origin declaration on an invoice where the value of the originating products in the consignment does not exceed 2,820 units of account. According to Appendix 6 to the origin rules in Annex B to the Agreement, 2,820 units of account are equivalent to 510,000 ISK, 50,000 NOK, 10,300 CHF, 23,269 ILS.

Under the Agreement between Iceland and the Faroe Islands, the applicable threshold is 5,110 ECU, cf. Article 21 of Annex 3 to the Agreement.

6.2.2.2 Origin declaration on an invoice by an approved exporter

An approved exporter may make an origin declaration on an invoice for any consignment, regardless of its value, cf. Article 22 and Article 21(1)(a) of Protocol 4 to the EEA Agreement and the corresponding provisions of other free trade agreements.

Exporters may apply to the Iceland Revenue and Customs authority for approved exporter status using the prescribed application form. The application form is available separately. Applications must be submitted to Iceland Revenue and Customs, Legal Department, Customs Division, Katrínartún 6, 105 Reykjavík, Iceland. When completing the application form, all relevant sections must be completed and the required supporting documentation must accompany the application.

The Iceland Revenue and Customs authority may authorise exporters who provide sufficient guarantees regarding the originating status of their products and who regularly export originating products to issue origin declarations on invoices. For this purpose, regular exports generally mean that the applicant exports originating products in at least 24 consignments per year on average. Applicants must also have a thorough knowledge of the rules of origin contained in the relevant free trade agreements, demonstrate a low error rate in the authority’s customs systems; and undertake to maintain their knowledge of the free trade agreements, in particular the rules of origin, and to comply fully with those rules.

Authorisation is granted for a period of five years, after which a new application must be submitted to the Iceland Revenue and Customs authority.

In exceptional circumstances, authorisation may be granted to exporters who do not meet the minimum consignment requirement, provided that they satisfy the other conditions for approval. In such cases, the authorisation is granted for a one-year trial period and is reviewed upon expiry of that period. If the exporter’s compliance record during the trial period is satisfactory, a permanent authorisation may subsequently be granted.

An approved exporter is required to comply with the information obligations set out in Article 24 of Protocol 4 and Article 149 of the Icelandic Customs Act No. 55/1987. The exporter must provide any documents and information that the customs authorities consider necessary to verify the correctness of origin declarations whenever requested, cf. also Article 20(3) of Protocol 4 to the EEA Agreement. Upon approval, the exporter is assigned an authorisation number, which must be included in the origin declaration on the invoice, cf. Article 21(3) of Protocol 4.

The authorisation may be withdrawn without prior notice if it is misused or if the conditions under which it was granted are no longer fulfilled, cf. Article 21(5) of Protocol 4.

Misuse of the authorisation may also give rise to criminal liability, including under Article 126(4) of the Icelandic Customs Act.

6.2.2.3 Form and content of an origin declaration on an invoice

Form of the declaration

An origin declaration on an invoice is made by typing, stamping or printing the declaration set out in Appendix IV to Protocol 4 to the EEA Agreement on the invoice, delivery note or another commercial document, using one of the languages specified therein. See Appendix II. The declaration may also be handwritten, provided that it is written in ink and in block capitals, cf. Article 20(4) of Protocol 4 to the EEA Agreement. The origin declaration may be placed on the reverse side of the invoice.

Any corrections to the text of the declaration must be made in accordance with the rules governing corrections to EUR.1 movement certificates. All corrections must be authenticated by the exporter.

The exporter must sign the origin declaration by hand. However, an approved exporter is not required to provide a handwritten signature if the exporter has given the customs authorities a written undertaking accepting full responsibility for every invoice declaration identified by the exporter’s authorisation number, as if the declaration had been signed personally, cf. Article 20(5) of Protocol 4.

Wording of the origin declaration

The wording of an origin declaration used for goods manufactured in Iceland and qualifying as originating products under a free trade agreement varies depending on the agreement under which preferential treatment is claimed. One version applies under the 1972 Free Trade Agreement between Iceland and the European Community; the EFTA Convention; and the EFTA free trade agreements with Bulgaria, Estonia, Israel, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia, the Czech Republic, Türkiye and Hungary. Another version applies under the EEA Agreement. In the first group of agreements, the declaration states that the goods are of Icelandic preferential origin. Under the EEA Agreement, the declaration states that the goods are of EEA preferential origin. The declaration must be reproduced exactly as prescribed.

Examples of invoice declarations in English

Appendix II contains the prescribed wording of invoice declarations in additional languages.

Under Article 25 of Protocol 4 to the EEA Agreement, the following products are considered originating products without the need to present formal proof of origin, provided that the goods are not imported by way of trade, a declaration has been made that the products satisfy the requirements of the Protocol, and there is no doubt as to the truthfulness of that declaration:

Where the products are sent by post, the declaration may be made on the C2/CP3 customs declaration form or on a sheet attached to that form.

Other free trade agreements

Different value limits apply under the EFTA–Israel Free Trade Agreement.

Products sent in small packages from one private individual to another may have a value of up to 200 units of account, equivalent to 43,000 ISK, 4,100 NOK, 900 CHF, 1,939 ILS. Products carried in travellers’ personal luggage may have a value of up to 565 units of account, equivalent to 100,000 ISK, 10,000 NOK, 2,100 CHF, 4,654 ILS.

Under the Agreement between Iceland and the Faroe Islands, products sent in small packages from one private individual to another may have a value of up to 365 ECU, while products carried in travellers’ personal luggage may have a value of up to 1,025 ECU.

Under Article 22(1) of Protocol 4 to the EEA Agreement, proof of origin is valid for four months from the date of issue in the exporting country and must be submitted to the customs authorities in the importing country within that period. A EUR.1 movement certificate is valid for four months from the date of endorsement by the customs authorities, as shown in Box 11 of the certificate. The same rule applies to a movement certificate marked “ISSUED RETROSPECTIVELY” (see section 6.2.5). A movement certificate issued as a “DUPLICATE” (see section 6.2.6) is valid for four months from the date of issue of the original certificate.

The same validity period applies to an origin declaration on an invoice, which remains valid for four months from the date on which the declaration was made.

Notwithstanding the general requirement that proof of origin must be submitted within the four-month period, the customs authorities in the importing country may accept a EUR.1 movement certificate or an origin declaration on an invoice that is presented after the expiry of that period where the failure to submit the document in time was due to exceptional circumstances or circumstances beyond the control of the person concerned, cf. Article 22(2) of Protocol 4.

In other cases where the document is submitted late, the customs authorities in the importing country may nevertheless accept the EUR.1 movement certificate or origin declaration, provided that the products were presented to those authorities before the expiry of the four-month period, cf. Article 22(3) of Protocol 4.

In exceptional cases, a EUR.1 movement certificate may be issued after the exportation of the originating products has taken place, provided that:

The application for the retrospective issue of a movement certificate must include details of where and when the originating products were exported, together with the reasons for the request, cf. Article 17(2) of Protocol 4 to the EEA Agreement.The customs authorities may issue a EUR.1 movement certificate retrospectively only after verifying that the information contained in the exporter’s application corresponds to the information contained in the relevant supporting documents, cf. Article 17(3) of Protocol 4.EUR.1 movement certificates issued retrospectively must be endorsed in the remarks box of the certificate with the words “ISSUED RETROSPECTIVELY”, in one of the languages specified in Article 17(4) of Protocol 4, cf. Article 17(5) of the Protocol.

If a EUR.1 movement certificate has been stolen, lost or destroyed, the exporter may apply for a duplicate certificate to be issued on the basis of the export documents held by the customs authorities, cf. Article 18(1) of Protocol 4 to the EEA Agreement. The application for a duplicate must be submitted to the customs authority that originally issued the movement certificate. A duplicate EUR.1 movement certificate must be endorsed in the remarks box with the word “DUPLICATE”, in one of the languages specified in Article 18(2) of Protocol 4. The duplicate certificate must bear the same date of issue as the original EUR.1 movement certificate and takes effect from that date, cf. Article 18(4) of Protocol 4.

An exporter who applies for a EUR.1 movement certificate or makes an origin declaration on an invoice is responsible for ensuring that the information provided in the certificate or declaration is accurate. By doing so, the exporter declares that the exported goods satisfy the applicable rules of origin, cf. Article 16(1) of Protocol 4 and the wording of the origin declaration set out in Appendix IV to Protocol 4. The exporter also undertakes to retain supporting evidence relating to the originating status of the goods, such as proofs of origin relating to materials used in production; supplier declarations concerning processing or working already carried out within the EEA; and any other documents necessary to demonstrate compliance with the applicable rules of origin. Such documents must be made available to the customs authorities upon request, cf. Article 16(3) and Article 20(3) of Protocol 4.

The endorsement of a EUR.1 movement certificate by the customs authorities is based on the information provided in the application and the accompanying supporting documents. Such endorsement does not affect or diminish the exporter’s responsibility for the accuracy of the information provided or for compliance with the applicable rules of origin.

Article 27 of Protocol 4 to the EEA Agreement lists the principal supporting documents that may be used to substantiate the originating status of goods. The list is not exhaustive.

Where the originating status of materials cannot be demonstrated by means of appropriate supporting documents, those materials are treated as non-originating materials for the purposes of applying the rules of origin and processing requirements.

Article 28 of Protocol 4 to the EEA Agreement requires exporters and suppliers to retain supporting documents for at least three years. However, supporting documents that fall within the scope of the Icelandic Accounting Act No. 145/1994 must be retained for seven years from the end of the relevant financial year, cf. Article 20(1) of that Act.

Articles 32 and 33 of Protocol 4 to the EEA Agreement empower customs authorities to carry out post-clearance verification of a EUR.1 movement certificate or an origin declaration on an invoice where there are reasonable grounds to doubt the accuracy of the information provided or as part of a random verification programme.

Such verification may be initiated at the request of the customs authorities in either the importing country or the exporting country. Protocol 4 provides for mutual administrative assistance between the contracting parties in verifying the authenticity of proofs of origin and the supporting documents on which they are based, cf. Article 31 of Protocol 4.

Exporters issuing proofs of origin for finished products or materials, suppliers, and any other persons providing declarations concerning the origin of goods are required to furnish the customs authorities with all information relevant to the verification process, cf. Articles 32(3) and 33(3) of Protocol 4.

The obligation to provide information relevant to a post-clearance review is also reflected in Articles 24 and 122(6) of the Icelandic Customs Act. Article 122(6) further authorises the customs authorities, where appropriate, to examine business premises, accounting records and correspondence of the persons concerned.

Where a post-clearance review reveals that a proof of origin, or the documents supporting it, contains incorrect information, the customs authorities of the importing country must be informed of the outcome of the review, regardless of whether the review was initiated by the customs authorities of the importing country or the exporting country.

The Iceland Revenue and Customs authority is responsible for liaising with foreign customs administrations regarding the verification of the origin of goods.

Any person who provides, or causes to be provided, documents or certificates containing materially incorrect information concerning the origin of Icelandic export goods, with the intention of enabling those goods to obtain preferential treatment upon importation into another contracting party, is liable to a fine and, in serious cases, imprisonment for up to two years, cf. Article 126(4) of the Icelandic Customs Act.

Article 35 of Protocol 4 further provides that any person who draws up, or causes to be drawn up, a document containing incorrect information for the purpose of obtaining preferential treatment for products shall be subject to penalties.

The same penalties may also apply under Article 126(3) of the Customs Act where a person makes false or misleading declarations, or submits false or misleading documents, in order to obtain preferential treatment for goods imported into Iceland.